How much did Pearce Bespoke receive from notes payable in 2024?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| 60,463 | \$ | (502,101) | \$ | (441,638) |
PEARCE BESPOKE FRANCHISING, LLC STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2024
| 2024 | |
|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |
| Net (loss) | $ (22,237) |
| Adjustments to reconcile net income (loss) to net | |
| cash provided by operating activities: | |
| Amortization expense | 1,010 |
| Recognition of deferred commissions | 145,502 |
| Recognition of non-refundable deferred franchise fees | (872,417) |
| Changes in assets and liabilities | |
| Accounts receivable | (83,157) |
| Deferred commissions | (156,000) |
| Accounts payable and accrued expenses | 32,700 |
| Franchisee payable | 151,944 |
| Non-refundable deferred franchise fees | 433,500 |
| Net cash (used) by operating activities | (369,155) |
| CASH FLOWS FROM INVESTING ACTIVITIES | |
| Net cash (used) for investing activities | - |
| CASH FLOWS FROM FINANCING ACTIVITIES | |
| Member contributions | 52,583 |
| Proceeds from notes payable | 409,200 |
| Payments on notes payable | (242,818) |
| Advances to related party | - |
| Net cash (used) by financing activities | 218,965 |
| NET INCREASE (DECREASE) IN CASH | (150,190) |
| CASH, BEGINNING | 1 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the company received $409,200 from notes payable during the year ended December 31, 2024. This figure is detailed within the statement of cash flows, which outlines the movement of cash both into and out of the company. Notes payable typically represent funds borrowed by the company that must be repaid over a specified period, often with interest.
For a prospective Pearce Bespoke franchisee, this information provides insight into how the franchisor is financing its operations. A significant inflow from notes payable could indicate that Pearce Bespoke is relying on debt to fund its activities. While utilizing debt is a common business practice, potential franchisees should evaluate the company's overall financial health and its ability to manage its debt obligations.
It's important to consider this figure in conjunction with other financial metrics, such as the company's revenue, expenses, and overall profitability. A healthy balance sheet would show that Pearce Bespoke is effectively managing its debt and generating sufficient cash flow to meet its obligations. Reviewing the complete financial statements and understanding the context of these notes payable is crucial for assessing the financial stability of Pearce Bespoke as a franchise opportunity.